Topic Content:
- Definition of Insurance
- Principles of Insurance
What is Insurance?
Insurance is a means of protection from financial loss. The main aim of setting up any business is to make a profit. Insurance is the protection taken against unforeseen destruction by fire, theft, accident, etc.
Principles of Insurance:
1. Indemnity:
IndemnityIn the indemnity clause, one party commits to compensate another party for any prospective loss or damage. More means a guarantee or assurance by the insurance company to put the insuredThe insured is the party (ies) (person or firm) having property covered against risk. They are covered by an insurance policy. More in the same position in which he was, immediately before the happening of the uncertain event. It is to protect someone, or some entity, from loss, damages, or injury that may occur in the future.
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i need more principals
Loss Minimisation: This principle says that the insured must always try their level best to minimize the loss of their insured property, in case of sudden events like fires, etc. The owner should not be negligent or irresponsible because he or she is insured on the subject matter.